Mind Gym PLC on Friday announced a new chief executive as it reported a swing to a half-year loss amid lower revenue and higher administrative costs, but hailed optimism for the future.
The London-based personal and business coaching service appointed Christoffer Ellehuus as chief executive designate after an extensive search that started early in the year. He is set to join the company on January 8 and become CEO by the time of the annual general meeting in July, subject to regulatory approval.
Further, Mind Gym said it will appoint current CEO Octavius Black as executive chair as the current three-year term of Chair Ruby McGregor-Smith will end in July.
Reporting its results, the company said it swung to a pretax loss of £13.2 million in the six months to September 30, from a profit of £641,000 a year prior.
Revenue declined 28% to £20.9 million from £26.8 million. Administrative expenses increased 36% to £31.0 million from £22.7 million.
Looking ahead, Mind Gym said it was trading in line with its recently revised expectations. In October, it said it expected financial 2024 revenue and profit to be ‘significantly’ lower than market expectations at that time. In the financial year ended March 31, 2023, it recorded revenue of £55.0 million and pretax profit of £3.0 million.
On Friday, Mind Gym said it will see a ‘significant’ benefit from its energy framework, which has been in place since September and will continue through financial 2025.
The company reiterated that it targeted a medium-term earnings before interest, tax, depreciation and amortisation margin between 15% and 20%, up from 10% in financial 2023.
CEO Octavius Black said: ‘Recent wins and strong pipeline growth with several significant £1 million opportunities in healthcare, industrial and financial services, means we are confident of a significant improvement in financial performance in the second half of FY24. We have the right strategy, based on providing integrated solutions that deliver impact at scale. The opportunity for MindGym in this large and disaggregated market, remains strong.’
Mind Gym shares rose 3.9% to 40.00 pence each on Friday morning in London.
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